First Economic Assignment
Economy of Starbucks Coffee and Folgers Coffee
Plot the Starbucks graph using 10 cups of coffee for Q and $20.00 for P as point A (equilibrium).
Plot the Folgers Coffee graph using 10 cups of coffee for Q and $10.00 for P as point A (equilibrium).
-Determine which goods are normal and inferior goods.
Supply and Demand
1) Hurricane destroys coffee bean farms, thus decreasing production by 2 cups of
2) Recession hits California, hence income decreases thereby increasing/decreasing
consumption by 2 cups of coffee.
3) Which market(s) is/are experiencing a market failure?